Company Number: 13619541

Analysis Date: 2025-07-29 15:41 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Waterside Grill House Ltd is a very small, micro-entity operating in the take-away food sector. The company shows a modest but positive net asset position (£1,467) and stable equity over the last three years. However, the current liabilities exceed current assets significantly (£102,519 liabilities vs. £77,752 assets in 2024), leading to a net current liability position of -£24,767, which signals a potential liquidity strain. The company has a consistent employee base of 3 people and no overdue filings, indicating compliance and operational stability. Given the thin capital base and working capital deficit, approval for credit facilities should be conditional on close monitoring of cash flows and short-term liabilities, and possibly secured or limited in amount.

2. Financial Strength:
   The balance sheet shows very limited fixed assets (~£26k) and a small equity base (~£1.5k). Despite a small increase in current assets in 2024, the current liabilities have more than doubled since 2023, which worsens the liquidity position. The net asset position remains positive but marginal, indicating minimal buffer against financial stress. The company’s size, as a micro-entity, limits its financial muscle, and the reliance on current liabilities could expose it to refinancing risk.

3. Cash Flow Assessment:
   The significant increase in current liabilities to £102,519 versus current assets of £77,752 implies that the company may face challenges meeting short-term obligations without additional cash inflows or financing. The absence of detailed cash flow statements limits full assessment, but the negative net current assets indicate liquidity risk. The business should demonstrate strong operational cash generation or have external support to manage working capital effectively.

4. Monitoring Points:

• Monitor current liabilities trends and ensure they do not continue to outpace current assets.
• Watch liquidity ratios and cash conversion cycle closely to avoid cash shortfalls.
• Review any changes in trade creditors, accruals, or short-term borrowings.
• Assess turnover and profitability trends once available to confirm business growth or decline.
• Confirm no deterioration in compliance or director changes that might indicate governance risks.